Real Madrid have approached private investors over a potential loan borrowed against their ticket revenue, according to recent reports in the US.
Los Blancos have spent nearly a €1b on their refurbishment work at the Santiago Bernabeu stadium, approaching double the original budget for the stadium of €575m. Bloomberg say that they will go into the private debt market to fund these renovations to the tune of €370m, with the stadium set to be completed by the end of 2023.
Rather than a simple loan, they will use a waterfall payment scheme, as per the report, against their ticketing revenue. In practice, a percentage of ticketing revenue will go towards repaying the debt and the interest, with any extra from this ticketing revenue then returned to the club thereafter.
Barcelona have recently borrowed €1.5b to fund their own stadium renovations to the tune of €1.5b, while Chelsea borrowed €575m from private debt investors recently too, with this market providing more confidentiality. Real Madrid did not respond when asked for comment, but in order to get any deal through, President Florentino Perez must receive approval from the club’s members, with the general assembly scheduled for the 11th of November.
Los Blancos are set to receive a major boost from an underground car park scheme, which could earn them over half €1b over the next four decades, although this project is being held up by complaints of a misuse of public funds.
